The abandoned farm Kaldbakur is on the Kaldbakur Cove.  Both the Book of Settlements and the Grettir Saga mention the first settler, Onundur Wooden Leg Ofeigsson, who built the first farm there.  He also claimed the land on the coves Birgisvik and Kolbeinsvik.  Down by the sea, at the former fishing outfit Skreflur, the ruins of the fishermen’s huts are obvious.

The farm was abandoned in 1967 and the farmers at Bjarnarfiord have made hay there since then.  The dwelling house at Kaldbakur is still standing.  It was renovated with the wood from the house of the last Danish merchant at Kuvikur in the forties.  An avalanche damaged the house during the winter 1994-95 after it had been thoroughly restored.  Avalanche danger has always threatened the farm because of the snow collection of the edges of the precipitous Mt Kaldbaksfjall.